Cobidex – The World’s First Community-Owned Bitcoin Derivatives Exchange

Bitcoin or BTC has remained the king of the crypto-verse ever since its inception. As the world’s first cryptocurrency, it has seen a drastic rise in value especially over the last few years. The mass adoption of BTC and other cryptocurrencies over the years paved the way for implementing traditional investment strategies, which brings us to derivatives. 

Derivatives have always been used as a speculative or hedging instruments for volatile assets. Thus it’s not surprising for crypto-traders to utilise the concept on Bitcoin. Bitcoin derivatives were thus introduced in the form of perpetual, future and options contracts. 

What are Bitcoin derivatives? 

Bitcoin derivatives refer to securitized contracts, relying on the underlying price of an asset. Traders have the option to speculate and earn profit from the asset’s price movements in the long-term. Derivatives trading can be broadly categorised into Futures trading and options trading. 

In futures trading, futures contracts are settled on a future date using a predetermined price. This lets traders speculate on the price movement of the asset represented till a specific future date. In the case of options trading, the buyer pays a premium to protect the seller’s cause with no obligation to execute the trade on that exact predetermined date. The main difference between the two types is the mandatory nature of the former. In other words, options do not have the ability of buying or selling the underlying security as they can expire without any value. 

BTC has come a long way from intraday to being traded on the derivatives market.. Thus, the popularity of speculative trading comes as no surprise as it provides the best way of gaining on Bitcoin’s rising value without owning them directly. Derivatives are ideal for hedging as they are based on the movement of an asset’s value rather than its actual value. 

Introducing Cobidex

Cobidex is the world’s 1st cryptocurrency derivatives platform which is community owned. It first set its course by providing USDT perpetual contracts. USDT standard perpetual contracts use Tether or USDT as collateral assets. Thus in this case, USDT works as the settlement currency. This gives traders an alternative to coin-margined contracts which experience extreme volatility. Currently there are  a number of the most popular perpetual contracts on Cobidex, including BTC/USDT and ETH/USDT. 

Why use Cobidex? 

Cobidex separates itself from other exchanges by providing a more personalized approach to trading which features few restrictions. To break it down, we’ve highlighted the following salient features for Cobidex. 

• Security

Cobidex uses best in class security protocols that are the norm for most decentralized cryptocurrency derivatives exchanges. This way it ensures that it can provide the highest levels of liquidity, industry leading security and insured client funds with 100% guarantee. 

• Quickness

Cobidex is pretty fast compared to other exchanges as it employs a matching engine that enables up to 100,000 transactions per second. 

• COBI governance token

Cobidex’s COBI token is the platform’s unique token that features a governance set of use cases all used to incentivize traders on the exchange. It delivers a unique proposition aimed at disrupting the existing cryptocurrency market. 

• Trade mining

 Trading mining is the process through which the Cobi token comes into circulation. Trade mining gives traders on the platform rewards for simply using Cobidex for trading. Traders would be rewarded 100% in line with the trading fee they pay on the platform. Every 24 hours traders will receive Cobi token depending on the trading fee that is generated on that day. Token holders can also choose to stake the tokens that they receive from trade mining and earn a daily yield from the Cobidex daily revenue which would also be distributed daily.

• Referral mining: 

With the referral mining program, every Cobidex user gets 5 invites that they can use to bring other users to the platform. Once these invitees register their accounts and start trading on the Cobidex platform, the user will get a referral mining bonus. This bonus consists of a 20% share of the entire trading fees of their invitees in perpetuity. This fee would initially be paid out in Cobi, once the token distribution period ends, the platform will pay out this fee in USDT.

• Access to perpetual contracts

Perpetual contracts are a relatively new addition to the cryptocurrency market. They allow traders to keep their position open for as long as they want to. They also have an added advantage of adding leverage to their positions as well. BTC Perpetual contracts trade at a price which is nearer to BTC’s spot price as they closely follow its index. You can utilise higher leverage to open larger positions, substantially gaining from them. 

• Technical Advantages

The website has a valid SSL certificate, which is used to secure communication between the trader’s computer and the platform. The platform also offers anonymous payment methods which some traders prefer. 

Conclusion

Cobidex is currently riding the wave of popularity that cryptocurrency derivatives are experiencing in the market. This state of the art cryptocurrency derivatives exchange provides traders with the ability to choose from among the world’s most traded perpetual contracts. One of the main reasons Cobidex stands out is its wide range of community-focused incentive programs. This provides you with a perfect opportunity to turn trading costs into investments.